Car totaled after just 29 days.
My girlfriend and I bought a 2020 RAV4 about a week before Christmas. We secured GAP insurance and signed up for Progressive insurance shortly afterward. Unfortunately, just a few weeks later in January, while she was stopped at a traffic light, an 18-wheeler struck her and two other vehicles. The driver of the truck was in a CDL training program at a local community college and misjudged his turn, dragging our RAV4 along with the other cars. Sadly, our RAV4 suffered the most damage and was declared a total loss.
We had put down $3,000 as a down payment and even made our first car payment a week early. After weeks of back-and-forth with insurance and rectifying police reports, we now find ourselves without a vehicle. Progressive was able to cover the amount necessary to pay off the car, but we only received about $380 afterward. Our adjuster informed us that GAP insurance wouldn’t be utilized in our situation, which seems confusing to us.
Even after accounting for our deductible and rental reimbursement, we’re still at a loss compared to what we invested. We’ve been told that all claims will be processed together once any medical and bodily injury claims are settled, adding to our frustration. We’re shocked and disappointed because this feels like an unfortunate situation that has left us feeling stuck. We were hopeful that GAP insurance would help us get back on the road quickly. Any advice or corrections would be greatly appreciated!
I’m really sorry to hear about your situation. It sounds incredibly frustrating and stressful to deal with everything after the accident, especially so soon after purchasing your vehicle.
From what you’ve described, it seems like you followed all the right steps by getting GAP insurance and comprehensive coverage. In general, GAP insurance is meant to cover the difference between what you owe on your car loan and what your insurance company pays out if the car is totaled. Since Progressive was able to pay off your car and you received some leftover value, it sounds like you were not upside down on your loan — that’s often when GAP insurance comes into play.
However, since it seems your car was paid off and you received some additional funds, your adjuster might be correct in that GAP insurance wouldn’t apply in your case as you didn’t have a financial deficit after the payout. That being said, the entire insurance process can be quite complex, especially with multiple parties involved and especially if there are bodily injury claims pending.
It might be worth reaching out to your insurance agent for clarification on the GAP insurance policy specifics to ensure that everything was handled correctly. They should be able to provide further insights into your situation and help clarify the next steps. Additionally, consider consulting with a legal professional, especially if medical claims are being processed, to ensure that you’re fully aware of your rights and options.
It’s completely understandable to feel shocked and disappointed after such a tragic event, and it’s okay to reach out for help during this difficult time. Take your time to process everything, and hopefully, you’ll find a way to move forward that feels right for you and your girlfriend.